Airline News and Commentary

Low Fares in Australia

With a slow news day in the US, I wanted to pass along a crazy fare sale going on in Australia right now. To publicize the launch of Jetstar, Qantas’ new low-fare airline, it is selling 100,000 tickets at A$29 (USD$23) on its website. That’s up to about 80% off the typical fares. Low fare competitor Virgin Blue immediately matched the offer, with its CEO saying, “Make no mistake, we will not be underpriced or out-stunted, ever.”

Why doesn’t this kind of irrational, Ryanair-like behavior ever happen here? I dare Spirit Airlines, or the new Independence Air to generate some publicity with an economically ridiculous, but publicity fabulous, stunt like this.